Market innovation is the implementation of a new market technique relating important changes in product design, position, promotion, and pricing. It also means new market distribution procedure in foreign and domestic markets (Ceylan, 2013, p. 215). The task will exclusively discuss significant factors for innovative success, the innovation circle together with interrelated cycles and stages of New Product Development. Marketing innovations main purposes are to address customers’ needs, starting fresh markets.
In the contemporary’s economy, quality and customer satisfaction are still significant; however, one feature of business that has sneaked or crawled upon various organizations and found many to be flat-footed in gripping or embracing the new cutting edge of the business challenge is innovation. There is now a total significance to embrace and accept change in a globe that is changing at a high-speed rate. Where there is no innovation to drive change, many organizations will eventually finds themselves under threat, whether it is from rivals with better products, or organization with better services strategies or new and better ways of doing business (Fang, Palmatier & Grewal, 2011, p. 594).
Innovation circle are formed in response to organization’s business needs, for example, Johnson and Johnson Company with the main topic is entrepreneurship. Accomplishing of innovation involves various interconnected innovation procedures, based on sound innovation ground rules at the organization level and strongly connected to the customer and market. Innovation starts with idea formation, analysis, and planning, testing and sampling, business planning and execution. Johnson and Johnson as a company, seek the best science and technology to solve the greatest unmet needs of the current situation. The company has four innovation centers that sustain its innovation projects.
New Product Development
It is a process of introducing or bringing a new product into the market. Various organizations always engage this process as a result of changes in consumer preferences; improving competition and improvements in technology and to take advantage of on a new opportunity (Allen, Chandrasekaran & Basuroy, 2018, p. 113). Johnson and Johnson have thrived through an understanding of what their market wants, making perfect improvements on products, creating new products that satisfy or surpass the expectations of their consumers. Johnson and Johnson exercise diversity system where they manufacture several products to satisfy the desires of the customers, most of these products complement one another. They carry out the process by teaming up with several stakeholders to co-create the updated line of new products simpler, for example, they have created soaps, shampoos, washing detergents and baby diapers and the re-launch of some products such as soaps. Johnson and Johnson constantly review the changing needs, wants, and trends in the market to make the necessary changes to remain relevant in the market which has become more competitive. On the other hand, by involving the stakeholders (customers) in the process, the company depends on the feedback from their customers on the current products and makes various changes that help in the generation of new products and improving the current ones.
Johnson and Johnson as the main example for this case have an explicit innovation process. It has innovative management that promotes ideas and innovations. Innovation’s success depends on different factors such as;
Management’s commitment to innovation: in the absence of the of organization management support, innovation team will waste their precious time creating ideas. Innovation needs finance and time; therefore, it means that the management has to plan for the project in the budget as one of the necessary projects (Medeiros, Vidor & Ribeiro, 2018, p. 332). Johnson and Johnson encourage their suppliers to embark on innovative solution and convey new business representation that contribute to their common goals for development and rationalized procedures. Johnson and Johnson apply new technology to help meet the needs of the consumers as well as remaining competitive in the market.
The ability of any organization to come up with new ideas to maintain operations, products, and services clean and fresh is the key to success for the business. These ideas are brought together through a process of innovation. Thinking or generating new ideas is the major factor that stirs the innovation process, thus business has a much greater task in an attempt to turn the ideas into an actual product that will benefit consumers as the sales volume increase daily.
List of References
Ceylan, C. (2013). 'Commitment-based HR practices, different types of innovation activities and firm innovation performance', International Journal of Human Resource Management, vol. 24, no. 1, pp. 208-226.
Fang, E, Palmatier, RW, & Grewal, R. (2011). 'Effects of Customer and Innovation Asset Configuration Strategies on Firm Performance', Journal of Marketing Research (JMR), vol. 48, no. 3, pp. 587-602.
Allen, BJ, Chandrasekaran, D, & Basuroy, S. (2018). 'Design Crowdsourcing: The Impact on New Product Performance of Sourcing Design Solutions from the "Crowd"', Journal of Marketing, vol. 82, no. 2, pp. 106-123.
Medeiros, J, Vidor, G, & Ribeiro, J. (2018). 'Driving Factors for the Success of the Green Innovation Market: A Relationship System Proposal', Journal of Business Ethics, vol. 147, no. 2, pp. 327-341